Intel layoffs: Is the new CEO cutting 20% of jobs?

Big news out of Silicon Valley. Intel, the chip giant, might be making some major cuts. We’re talking potentially 20% of their workforce. That’s a lot of people.

Think about it. That’s like emptying out a stadium. Over 21,000 jobs could be affected, according to a report. Why the shakeup?

New CEO, New Direction?

Intel has a new CEO, Lip-Bu Tan. He took the reins back in March. And he’s got a big job ahead of him. Intel has been struggling. Revenue is down. Competition is fierce.

Tan wants to refocus the company. He said Intel will be “an engineering-focused company. ” What does that mean for everyone else?

Cutting Costs, Streamlining the Business

The word is that these potential layoffs are about cutting costs. Intel wants to get rid of some of the bureaucracy. They want to be more efficient.

It’s not the first time Intel has had to make tough choices. Last year, they announced plans to cut 15,000 jobs after a rough financial quarter. Ouch.

The Numbers Don’t Lie

Let’s look at the numbers. Intel’s employee count dropped from almost 125,000 to under 109,000 in just one year. Revenue has been declining for three years straight. From $79 billion to just over $53 billion.

The company is facing some serious headwinds.

Playing Catch-Up in the AI Race

Intel is also trying to break into the AI chip market. But they’re way behind. Nvidia dominates right now. They own most of the market.

Intel even scrapped plans for a new AI chip. That’s a tough decision. They’re now focusing on data center solutions.

What’s Next?

Intel’s stock has taken a hit. It’s down a lot over the last year. They’re set to release their first quarter earnings soon.

Will the news be good? Or will Intel have more challenges to face? Stay tuned.